21226734 2025-01-01 2025-12-31 1 21226734 2025-01-01 2025-12-31 21226734 2025-01-01 2025-12-31 1 21226734 2025-01-01 2025-12-31 1 21226734 2025-01-01 2025-12-31 2 21226734 2025-01-01 2025-12-31 3 21226734 2023-01-01 2023-12-31 21226734 2022-01-01 2022-12-31 21226734 2021-01-01 2021-12-31 21226734 2023-12-31 21226734 2022-12-31 21226734 2021-12-31 21226734 2024-01-01 2024-12-31 21226734 2025-12-31 21226734 2024-12-31 21226734 2024-01-01 d:ContributedCapitalMember 21226734 2024-01-01 d:ReserveForDevelopmentExpenditureMember 21226734 2024-01-01 d:RetainedEarningsMember 21226734 2024-01-01 d:ProposedDividendRecognisedInEquityMember 21226734 2024-01-01 2024-12-31 d:ReserveForDevelopmentExpenditureMember 21226734 2024-01-01 2024-12-31 d:RetainedEarningsMember 21226734 2024-01-01 2024-12-31 d:ProposedDividendRecognisedInEquityMember 21226734 2024-12-31 d:ContributedCapitalMember 21226734 2024-12-31 d:ReserveForDevelopmentExpenditureMember 21226734 2024-12-31 d:RetainedEarningsMember 21226734 2024-12-31 d:ProposedDividendRecognisedInEquityMember 21226734 2025-01-01 d:ContributedCapitalMember 21226734 2025-01-01 d:ReserveForDevelopmentExpenditureMember 21226734 2025-01-01 d:RetainedEarningsMember 21226734 2025-01-01 d:ProposedDividendRecognisedInEquityMember 21226734 2025-01-01 2025-12-31 d:RetainedEarningsMember 21226734 2025-01-01 2025-12-31 d:ContributedCapitalMember 21226734 2025-12-31 d:ContributedCapitalMember 21226734 2025-12-31 d:ReserveForDevelopmentExpenditureMember 21226734 2025-12-31 d:RetainedEarningsMember 21226734 2025-12-31 d:ProposedDividendRecognisedInEquityMember 21226734 2025-01-01 d:LandAndBuildingsMember 21226734 2025-01-01 d:LeaseholdImprovementsMember 21226734 2025-01-01 d:PlantAndMachineryMember 21226734 2025-01-01 2025-12-31 d:LandAndBuildingsMember 21226734 2025-01-01 2025-12-31 d:PlantAndMachineryMember 21226734 2025-01-01 2025-12-31 d:LeaseholdImprovementsMember 21226734 2025-12-31 d:LandAndBuildingsMember 21226734 2025-12-31 d:LeaseholdImprovementsMember 21226734 2025-12-31 d:PlantAndMachineryMember 21226734 2025-12-31 d:LandAndBuildingsMember d:LeasedAssetsMember 21226734 2025-12-31 d:LeaseholdImprovementsMember d:LeasedAssetsMember 21226734 2025-12-31 d:PlantAndMachineryMember d:LeasedAssetsMember 21226734 2025-01-01 d:DepositsLongtermInvestmentsAndReceivablesMember 21226734 2025-12-31 d:DepositsLongtermInvestmentsAndReceivablesMember 21226734 2025-12-31 1 21226734 2025-01-01 21226734 2024-01-01 21226734 2025-12-31 d:OtherPayablesIncludingTaxPayablesLiabilitiesOtherThanProvisionsLongtermMember 21226734 2024-12-31 d:LongtermBillsOfExchangePayableMember iso4217:DKK xbrli:pure xbrli:shares Danmark Revisionspåtegning Regnskabsklasse C, mellemstor virksomhed Årsrapport Langagervej 1 Basis for Opinion Beierholm 9220 Aalborg Ø 2026-05-14 21226734 2026-05-14 Nille Askvad Hviid Klæbel Hørning Opinion 2024-01-01 2024-12-31 2025-01-01 2025-12-31 Door System A/S Agerskovvej 16 8362 Skanderborg Beierholm 32895468 Tangen 9 8200 Aarhus N We have on this day presented the annual report for the financial year 01.01.25 - 31.12.25 for Door System A/S. The annual report is presented in accordance with the Danish Finan­cial Sta­te­ments Act. In our opinion, the financial statements give a true and fair view of the company's assets, liabilities and financial position as at 31.12.25 and of the results of the company's activities for the financial year 01.01.25 - 31.12.25. We believe that the management's review includes a fair review of the matters dealt with in the management's review. The annual report is submitted for adoption by the general meeting. Nille Askvad Hviid Klæbel Benoit Jean Yves Deslandes Chairman Zdenek Vavrin Nille Askvad Hviid Klæbel To the Shareholder of Door System A/S In our opinion the fi­nan­cial sta­te­ments give a true and fair view of the company's finan­cial posi­tion at 31.12.25 and of the results of the company's ope­ra­tions for the finan­cial year 01.01.25 - 31.12.25 in ac­cor­dan­ce with the Danish Finan­cial Sta­te­ments Act. We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s responsibilities for the audit of the fi­nan­cial sta­te­ments” section of our report. We are independent of the company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the pre­pa­ra­tion of fi­nan­cial sta­te­ments that give a true and fair view in ac­cor­dance with the Danish Finan­cial Sta­te­ments Act and for such in­ter­nal control as Mana­gement de­ter­mi­nes is necessary to enable the pre­pa­ra­tion of fi­nan­cial sta­te­ments that are free from material misstatement, whether due to fraud or error.In preparing the fi­nan­cial sta­te­ments, mana­ge­ment is responsible for assessing the company's ability to continue as a going concern, dis­closing, as applicable, mat­ters related to going con­cern and using the going concern basis of ac­counting in pre­paring the fi­nan­cial sta­te­ments unless mana­ge­ment either intends to liquidate the company or to cease operations, or has no rea­listic alternative but to do so. Our objectives are to obtain reasonable as­surance about whether the fi­nan­cial sta­te­ments as a whole are free from material mis­statement, whether due to fraud or error, and to issue anauditor’s report that inclu­des our opinion. Reasonable assurance is a high level of assurance, but is not a gua­ran­tee that an audit conducted in accor­dance with ISAs and the additional requirements applic­able in Denmark will always detect a material misstatement when it exists. Mis­sta­te­ments can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be ex­pec­ted to influence the economic decisions of users taken on the basis of these fi­nan­cial sta­te­ments.As part of an audit conducted in accordance with ISAs and the additional requirements applic­able in Denmark, we exercise pro­fes­sional judgment and maintain professional scepticism through­out the audit. We also: Identify and assess the risks of material misstatement of the fi­nan­cial sta­te­ments, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and ap­pro­priate to provide a basis for our opinion. The risk of not detecting a mate­rial misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, mis­repre­sen­tations, or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro­priate in the cir­cum­stances, but not for the purpose of expres­sing an opinion on the effectiveness of the company's inter­nal control.Evaluate the appropriateness of accoun­ting policies used and the reason­able­ness of accounting estimates and related disclosures made by management.Conclude on the appropriateness of manage­ment’s use of the going concern basis of accoun­ting in preparing the fi­nan­cial sta­te­ments and, based on the audit evidence obtained, whether a mate­rial uncertainty exists related to events or conditions that may cast signi­ficant doubt on the company's ability to con­tinue as a going concern. If we con­clude that a material uncertainty exists, we are required to draw attention in our audi­tor’s report to the related disclosures in the fi­nan­cial sta­te­ments or, if such dis­closures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.Evaluate the overall presentation, structure and contents of the fi­nan­cial sta­te­ments, including the disclosures, and whether the fi­nan­cial sta­te­ments repre­sent the underlying transactions and events in a manner that gives a true and fair view.• Plan and perform the audit of the financial statements to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units as a basis for expressing an opinion on the financial statements. We are responsible for the direction, supervision and review of the audit work performed. Weremain solely responsible for our audit opinion.We communicate with those charged with gover­nance regarding, among other mat­ters, the planned scope and timing of the audit and significant audit findings, inclu­ding any significant deficiencies in internal control that we identify during our audit. Management is responsible for the mana­ge­ment’s review.Our opinion on the fi­nan­cial sta­te­ments does not cover the management’s review, and we do not express any form of assurance con­clu­sion thereon. In connection with our audit of the fi­nan­cial sta­te­ments, it is our responsibility is to read mana­gement’s review and, in doing so, con­sider whether management’s review is mate­rially in­con­sistent with the fi­nan­cial sta­te­ments or our know­ledge obtained during the audit, or other­wise appears to be mate­rially misstated.Moreover, it is our responsibility to consider whether management’s review provides the infor­mation required under the Danish Financial Statements Act.Based on the work we have performed, we conclude that the management’s review is in accordance with the fi­nan­cial sta­te­ments and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the management’s review. Aarhus Peter Vinstrup Henriksen State Authorised Public Accountant mne33244 54539000 43836000 37066000 10417000 7227000 5008000 -313000 -196000 195000 7874000 5521000 4199000 50371000 41025000 41025000 377000 1373000 570000 157000 461000 25209000 17836000 21115000 45 37 28 21 59 48 50 43 53 66 57 52 Ratios definitionsReturn on equity:Profit/loss for the year x 100Average equitySolvency ratio:Equity, end of year x 100Total assets Primary activitiesThe company's consist of manufacturing and trading cooling, freezing, and fire doors, as well as roller shutters for the retail sector, the pharmaceutical industry, and the food industry as its primary focus areas. In addition, the company continuously develops new door types for other industries where quality and hygiene are essential requirements.As of November 3rd 2025, the company has been 100% acquired by ASSA ABLOY Danmark A/S and is now a subsidiary in the ASSA ABLOY Group. Development in activities and financial affairsThe income statement for the period 01.01.25 - 31.12.25 shows a profit of DKK 1,491,351 compared with DKK 11,022,272 for the period 01.01.24 - 31.12.24. The balance sheet shows equity of DKK 34,485,394.Despite the company’s solid operational performance throughout 2024, the financial result for 2025 did not meet the original targets set by management. At the time of the most recent annual report dated May 1st 2025, expectations for the year were a profit in the range of DKK 13,000,000 – 18,000,000 before tax. The primary cause has been revenue decreasing by approximately 18% compared to 2024 primarily due to significant delays and timing shifts in a few major projects.As part of the acquisition by ASSA ABLOY, the company also incurred significant takeover-related costs, including advisory fees, integration expenses within IT, and restructuring of administrative functions. These non-recurring expenses had a direct negative impact on the annual result as well.Management views these effects as short-term consequences of the acquisition. Going forward, the integration into ASSA ABLOY is expected to create long-term strategic advantages, including stronger market access, expanded product development opportunities, and improved operational robustness.Management considers the result for the year satisfactory.As of Januar 1, 2025, a merger has been completed with the sister company Agerskovvej 16 ApS. The merger has been completed as a tax-exempt merger with Door System A/S as the continuing entity. OutlookThe company moves into 2026 with an increased focus on selling highquality doors and shutters, as well as a strong focus on maintaining a high service level, fully in line with the company’s strategy.To meet the growing demand, the company continuously aims to optimize production facilities and technology, improving both efficiency and product quality. In addition, we have expanded our sales and marketing team to strengthen market presence and reach more potential customers.The yearly result will also be affected negatively by non-recurring IT costs and interim consultancy fees related to the integration into ASSA ABLOY. Management expects a positive result before tax in the range of DKK 3,000,000 – 5,000,000 for the financial year 01.01.2026 – 31.12.2026. Financial risksPrice risksThe company is exposed to raw material price risks, as its products include a number of raw materials with fluctuating prices, primarily steel. Raw material price risks are not hedged. The impact on the company’s results has so far been limited, as price fluctuations in the key raw materials are largely passed on in the company’s sales prices.Foreign currency risksThe company is to a limited extent exposed to currency risks related mainly to EUR and GBP, due to purchase and sales transactions conducted in currencies other than DKK. ASSA ABLOY provides cash pooling to actively hedge currency risk.Interest rate risksDue to ASSA ABLOYs strong equity and financial preparedness, moderate changes in interest rates will not have any significant direct effect on earnings. Therefore, no hedging of interest rate risks is undertaken.Liquidity risksASSA ABLOY provides liquidity and credit facilities. Management considers the company’s liquidity and credit facilities to be sufficient to meet its obligations as they fall due. Research and development activitiesDevelopment activities primarily relate to the development and testing of fire doors. Subsequent eventsNo significant events have occurred after the end of the financial year. 59629162 67994177 54707919 52316027 1628584 947270 6298 0 3286361 14730880 32576 297629 1333115 455629 1985822 14572880 494471 3550608 1491351 11022272 0 32691 0 32691 23080701 0 0 1092378 2968656 3492714 26049357 4585092 0 4266638 25826 25074 25826 4291712 26075183 8909495 9730869 12119599 949753 1276477 737583 946484 11418205 14342560 20093101 25844510 0 748824 0 82527 406119 176768 124162 97795 20623382 26950424 4903 508099 32046490 41801083 58121673 50710578 801000 751000 33684394 23416328 34485394 24167328 703289 0 700000 0 1403289 0 72037 150289 1000278 1092077 1072315 1242366 215342 71011 20344 6955120 1000000 168720 4175119 7112948 9747686 1977617 605595 3378093 5396589 5637375 21160675 25300884 22232990 26543250 58121673 50710578 Figures in DKKShare capitalReserve for development costsRetained earningsProposed dividend for the financial yearTotal equityStatement of changes in equity for 01.01.24 - 31.12.24Balance as at 01.01.24751,0001,358,17413,100,08310,000,00025,209,257Net effect of changed accounting policies0-1,358,174-706,0270-2,064,201Adjusted balance as at 01.01.24751,000012,394,05610,000,00023,145,056Dividend paid000-10,000,000-10,000,000Net profit/loss for the year0011,022,272011,022,272Balance as at 31.12.24751,000023,416,328024,167,328Statement of changes in equity for 01.01.25 - 31.12.25Balance as at 01.01.25751,000023,543,820024,294,820Net effect of changed accounting policies00-127,4920-127,492Net effect of mergers and acquisition of enterprises50,00003,843,17303,893,173Adjusted balance as at 01.01.25801,000027,259,501028,060,501Group contribution004,933,54204,933,542Net profit/loss for the year001,491,35101,491,351Balance as at 31.12.25801,000033,684,394034,485,394 751000 1358174 13100083 10000000 -1358174 -706027 -10000000 11022272 751000 0 23416328 0 751000 0 23543820 0 -127492 50000 3843173 4933542 1491351 801000 0 33684394 0 46443188 45296675 5810080 4941063 610406 542665 1844245 1535624 83 77 Remuneration for the management:Remuneration for the Executive Board and Board of Directors1,642,8421,654,988 1642842 1654988 With reference to section 98b(3) no. 1 of the Dan­ish Fi­nan­cial Statements Act, re­mune­ration for the Executive Board and Board of Di­rectors are sum­marized for 2025 and 2024, as infor­ma­tion would other­wise lead to a­mounts be­ing shown for a single mem­ber of man­age­ment. 32523 187794 53 109835 119323 169100 679627 164376 19007 0 515158 122153 1491351 11022272 5.Property, plant and equipmentFigures in DKKLand and buildingsLeasehold improvementsPlant and machineryCost as at 01.01.2501,817,70418,445,176Additions relating to mergers and acquisition of enterprises25,760,52500Additions during the year00377,160Disposals during the year00-19,174Transfers during the year to/from other items1,750,226-1,817,70467,478Cost as at 31.12.2527,510,751018,870,640Depreciation and impairment losses as at 01.01.250-725,326-14,952,458Additions relating to mergers and acquisition of enterprises-3,061,22900Depreciation during the year-687,0970-908,800Reversal of depreciation of and impairment losses on disposed assets002,876Transfers during the year to/from other items-681,724725,326-43,602Depreciation and impairment losses as at 31.12.25-4,430,0500-15,901,984Carrying amount as at 31.12.2523,080,70102,968,656Carrying amount of assets held under finance leases as at 31.12.2500318,530 0 1817704 18445176 25760525 377160 -19174 1750226 -1817704 67478 27510751 0 18870640 0 -725326 -14952458 -3061229 -687097 -908800 2876 -681724 725326 -43602 -4430050 0 -15901984 23080701 0 2968656 0 0 318530 25826 25826 25826 31.12.2531.12.24DKKDKK7.PrepaymentsOther prepayments124,16297,795 Share capital 801 801000 31.12.2531.12.24DKKDKK9.Deferred taxDeferred tax as at 01.01.25-82,527-291,001Additions relating to mergers and acquisition of enterprises896,9410Deferred tax recognised in the income statement-111,125208,474Deferred tax as at 31.12.25703,289-82,527 -82527 -291001 -111125 208474 10.Other provisionsFigures in DKKWarranty commitmentsProvisions during the year700,000Provisions as at 31.12.25700,00031.12.2531.12.24DKKDKKOther provisions are expected to be distributed as follows:Current liabilities700,0000 -136100 1136378 1092077 12.Contingent liabilitiesGuarantee commitmentsThe company has through an insurance company, arranged work guarantees totalling DKK 14,906k.Other contingent liabilitiesThe company is taxed jointly with the other companies in the group and has joint, several and unlimited liability for income taxes for the jointly taxed companies. The total known tax liability for the jointly taxed companies is disclosed in the annual report of ASSA ABLOY DENMARK A/S, which serves as management company for the joint taxation. The liability also includes any subsequent corrections to the calculated tax liability as a consequence of changes made to the jointly taxable income etc. 13.Other commitmentsLease commitmentsThe company has concluded lease agreements with terms to maturity of 1-57 months and total lease payments of DKK 7,028k. Other commitmentsThe company has entered into a binding agreement for the purchase of raw materials that will not be delivered until after the balance sheet date. The agreement concerns the purchase of raw materials amounting to DKK 3,192k.The company has entered into service agreements. These agreements runs from 01.01.2026 and can be terminated at 3 months’ notice. The commitment amounts to DKK 176k. 14.Related partiesRelated party transactions are not disclosed, as all transactions are entered into in the ordinary course of business at arms’ length.Remuneration for the management is specified in note 1. Staff costs. The annual report is presen­ted in ac­cord­ance with the provisions of the Danish Fi­nan­cial Statements Act (Årsregn­skabs­lov­en) for medium-sized enterprises in re­port­ing class C with application of pro­vi­sions for a higher reporting class. Change in accounting policiesThe company has changed its accounting policies in the following areas:Recognition of development costs in the balance sheetPreviously, development costs were recognised in the balance sheet at cost. In future, development costs will be recognised in the income statement as a result of aligning the accounting policy with the newly established group structure. The comparative figures have been restated in accordance with the new accounting policy. The change in accounting policy has a positive impact of DKK 612k on the net profit for 2025. As at 31.12.25, equity is reduced by DKK 520k and the balance sheet total is reduced by DKK 667k.Comparative figures for 2024 have been restated in accordance with the new ac­counting policies in the income statement, balance sheet and notes. The accumulated effect of the change in accounting policies at the beginning of the financial year have been recognised in equity. The tax effect of the change has also been recognised directly in equity.The total changes in accounting policies have a positive impact of DKK 150k on the profit before tax for 2025. Tax for the year resulting from the change in accounting policies amounts to DKK 33k, after which the net profit for the year is increased by DKK 117k. As at 31.12.25, equity is reduced by DKK 1,084k and the balance sheet total is reduced by DKK 1,390k.Except for the areas mentioned above, the accounting policies have been applied consist­ently with the previous year. Basis of recognition and measurementIncome is recognised in the income state­ment as earned, including value adjust­ments of fin­an­cial assets and liabilities. All ex­penses, including depreciation, amortisa­tion, impair­ment losses and write-downs, are also recognised in the in­come state­ment.Assets are recognised in the balance sheet when it is probable that future economic bene­fits will flow to the company, and the value of such assets can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow from the company, and the value of such liabilities can be measured reliably. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described for each item below.On recognition and measurement, account is taken of foreseeable losses and risks arising before the date at which the annual report is presented and proving or disproving matters arising on or before the balance sheet date. BUSINESS COMBINATIONSFor combined enterprises subject to com­mon control, the pooling of interests method is used. The pooling of interests is deemed to be completed at the beginning of the financial year without restatement of comparative figures. The difference between the agreed consideration and the equity value of the acquired enterprise is recognised in equity. CURRENCYThe annual report is presen­ted in Danish kroner (DKK).On initial recognition, transactions den­ominated in foreign currencies are trans­lated using the exchange rates applicable at the transaction date. Exchange rate differences between the exchange rate applicable at the transaction date and the exchange rate at the date of payment are recognised in the income statement as a financial item. Receivables, payablesand other monetary items denominated in foreign currencies are translated using the exchange rates applicable at the balance sheet date. The difference between the ex­change rate applicable at the balance sheet date and at the date at which the receivable or payable arose or was recognised in the latest annual report is recognised under financial income or ex­penses in the income statement. Fixed assets, inventories and other non-monetary assets acquired in foreign currencies are translated using historical exchange rates.On recognition of independent foreign entities, the income statements are translated at the exchange rates applicable at the transaction date or approximate average exchange rates. The balance sheet items are translated using the exchange rates applicable at the balance sheet date. Foreign currency translation adjustments arising from the translation of equity at the beginning of the year using the exchange rates applicable at the balance sheet date and from the translation of income statements from average exchange rates to the exchange rates applicable at the balance sheet date are recognised directly in equity under the reserve for net revaluation according to the equity method in respect of investments measured ac­cord­ing to the equity method, and otherwise un­der the foreign currency translation reserve.Translation adjustments of intercompany balances with independent foreign entities, measured using the equity method and where the balance is considered to be part of the overall investment, are recognised directly in equity under the foreign currency translation reserve. On the divestment of foreign entities, accumulated exchange differences are recognised in the income statement. LEASESLeases relating to assets where the company has substantially all the risks and benefits incidental to the ownership of the asset (finance leases) are recognised in the balance sheet. On initial recognition, assets held under finance leases and related lease commitments are measured at the lower of the fair value of the leased asset and the present value of future lease payments. Subsequently, assets held under finance leases are treated like other similar assets.Lease commitments relating to assets held under finance leases are recognised in the balance sheet as payables. Subsequent to initial recognition, lease commitments are measured at amortised cost according to which the interest element of the lease pay­ment is recognised in the income statement over the lease term.Lease payments relating to operating leases are recognised in the income statement on a straight-line basis over the lease term. Gross profitGross profit comprises rev­enue, other operating income and raw materials and consumables and other external ex­penses. RevenueIncome from the sale of goods is recognised in the income statement if delivery has taken place and the risk has passed to the buyer before the end of the financial year and where the selling price can be determined reliably and is expected to be paid. Revenue is measured at fair value and is determined exclusive of VAT and other taxes collected on behalf of third parties and less discounts.Income from the rental of properties is recognised in the income statement for the relevant period. Revenue is measured at fair value and determined exclusive of VAT and discounts. Other operating incomeOther operating income comprises income of a secondary nature in relation to the enterprise’s activities, including rental income, salary supplements and refunds, negative goodwill and gains on the sale of intangible assets and property, plant and equipment. Costs of raw materials and consuma­blesCosts of raw materials and consumables comprise raw materials and consumables used for the year as well as any changes in inventories, including any inventory wastage.Write-downs of inventories of raw materials and consumables are also recognised under raw materials and consumables to the extent that these do not exceed normal write-downs. Other external expensesOther external expenses comprise costs re­lating to distribution, sales and advertising and administration, premises and bad debts to the extent that these do not exceed normal write-downs. Staff costsStaff costs comprise wages and salaries as well as other staff-related costs. De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment lossesThe de­pre­ci­a­tion and amor­ti­sa­tion of in­tan­gi­ble as­sets and prop­er­ty, plant and equip­ment aim at systematic de­pre­ci­a­tion and amor­ti­sa­tion over the expected useful lives of the assets. Assets are de­pre­ci­ated and amor­tised according to the straight-line method based on the following ex­pected useful lives and residual values:Land is not depreciated.The basis of de­pre­ci­a­tion and amor­ti­sa­tion is the cost of the asset less the expected residual value at the end of the useful life. Moreover, the basis of de­pre­ci­a­tion and amor­ti­sa­tion is reduced by any impairment losses. The useful life and residual value are determined when the asset is ready for use and reassessed annually.In­tan­gi­ble as­sets and prop­er­ty, plant and equip­ment are impaired in accordance with the accounting policies referred to in the ‘Impairment losses on fixed assets’ section. Other operating expensesOther operating expenses comprise costs of a secondary nature in relation to the enterprise’s activities, including costs relating to rental activities and losses on the sale of intangible assets and property, plant and equipment. Other net financialsInterest income and interest expenses, the interest element of finance lease payments, for­eign exchange gains and losses on trans­ac­tions denominated in foreign currencies etc. are recognised in other net financials. Tax on profit/loss for the yearThe current and deferred tax for the year is recognised in the income statement as tax on the profit/loss for the year with the portion attributable to the profit/loss for the year, and directly in equity with the portion attributable to amounts recognised directly in equity.The company is jointly taxed with Danish consolidated enterprises. In connection with the settlement of joint taxation contributions, the current Danish income tax is allocated between the jointly taxed enterprises in proportion to their tax­able incomes. This means that enter­prises with a tax loss receive joint taxation contributions from enterprises which have been able to use this loss to reduce their own taxable profit. Intangible assetsAcquired rightsAquired rights are measured in the balance sheet at cost less accumulated amortisation and impairment losses.Acquired rights are amortised using the straight-line method based on useful lives, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses’ section.GoodwillGoodwill is measured in the balance sheet at cost less accumulated amortisation and impairment losses.Goodwill is amortised using the straight-line method based on useful lives, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses’ section.Gains and losses on the disposal of intangi­ble assetsGains and losses on the disposal of intangible assets are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal. Property, plant and equipmentProperty, plant and equipment comprise land and buildings, leasehold improvements og plant and machinery.Property, plant and equipment are meas­ured in the balance sheet at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and expenses resulting directly from the purchase until the asset is ready for use. Interest on loans arranged to finance production is not included in the cost.The total cost of an asset is decomposed into separate components that are depreciated separately if the useful lives of the individual components vary.Property, plant and equipment are depreci­ated using the straight-line method based on useful lives and residual values, which are stated in the ‘De­pre­ci­a­tion, amor­ti­sa­tion and impair­ment losses' section.Gains and losses on the disposal of property, plant and equipment are determined as the difference between the selling price, if any, less selling costs and the carrying amount at the date of disposal less any costs of disposal. Equity investments in group en­tre­prisesEquity investments in subsidiaries are recognised and measured according to the equity method. For equity investments in subsidiaries, the equity method is considered a measurement method.On initial recognition, equity investments measured according to the equity method are measured at cost. Transaction costs directly attributable to the acquisition are recognised in the cost of equity investments. Under subsequent recognition and measurement of equity investments according to the equity method, equity investments are measured at the proportionate share of the enterprises' equity value, determined according to the accounting policies of the parent, adjusted for the remaining value of goodwill and gains and losses on transactions with the enterprises in question. Equity investments, where information for recognition according to the equity method is not known, are measured at cost.Equity investments with a negative carrying amount are measured at DKK 0. Receivables that are considered part of the combined investment in the enterprises in question are impaired by any remaining negative equity value. Other receivables from such enterprises are impaired to the extent that such receivables are considered uncollectible. Provisions to cover the remaining negative equity value are recognised to the extent that the company has a legal or constructive obligation to cover the liabilities of the enterprise in question.Gains or losses on disposal of equity investments are determined as the difference between the disposal consideration and the carrying amount of net assets at the time of sale, including non-amortised goodwill, as well as the expected costs of divestment or discontinuation. Gains and losses are recognised in the income statement under income from equity investments. Impairment losses on fixed assetsThe carrying amount of fixed assets which are not measured at fair value is assessed annually for indications of impairment over and above what is reflected in de­pre­ci­a­tion and amor­ti­sa­tion.If the company's realised return on an asset or a group of assets is lower than expected, this is considered an indication of impairment.If there are indications of impairment, an impairment test is conducted of individual assets or groups of assets.The assets or groups of assets are impaired to the lower of recoverable amount and carrying amount.The higher of net selling price and value in use is used as the recoverable amount. The value in use is determined as the present value of expected net cash flows from the use of the asset or group of assets as well as expected net cash flows from the sale of the asset or group of assets after the expiry of their useful lives.Impairment losses are reversed when the reasons for the impairment no longer exist. InventoriesInventories are measured at cost calculated according to the FIFO-method. Inventories are written down to the lower of cost and net realisable value.The cost of raw materials and consumables as well as goods for resale is determined as purchase prices plus expenses resulting directly from the purchase.The cost of manufactured finished goods and work in progress is determined as the value of direct and indirect material and labour costs. Production overheads include indirect material and labour costs as well as maintenance and depreciation of machinery, buildings and equipment used in the production process as well as the costs of factory administration and management. Interest on loans arranged to finance production is not included in the cost.The net realisable value of inventories is determined as the selling price less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and the expected development in the selling price. ReceivablesReceivables are measured at amortised cost, which usually corresponds to the nom­inal value, less write-downs for bad debts.Write-downs for bad debts are determined based on an individual assessment of each receivable if there is no objective evidence of individual impairment of a receivable.Deposits recognised under assets comprise deposits paid to the lessor under leases entered into by the company. PrepaymentsPrepayments recognised under assets com­prise costs incurred in respect of subse­quent financial years. CashCash includes deposits in bank account. EquityThe net revaluation of equity investments measured according to the equity method is recognized in the net revaluation reserve in equity according to the equity method to the extent that the carrying amount exceeds the cost.Grants received from the parent are recognised directly in equity under retained earnings, as the grants are treated as capital contributions. ProvisionsOther provisions comprise expected ex­penses incidental to warranty commit­ments, restructuring etc. and are recog­nised when the company has a legal or con­structive obligation at the balance sheet date and it is probable that such obligation will draw on the financial resources of the company. Provisions are measured at net realisable value or fair value if the provi­sion is expected to be settled over the longer term.Warranty commitments comprise the obli­gation to repair defective work within the warranty period. Warranty com­mitments are measured at net realisable value and recognised based on previous years’ experience with warranty work. Current and deferred taxCurrent tax payable and receivable is recognised in the balance sheet as tax computed on the basis of the taxable income for the year, adjusted for tax paid on account.Joint taxation contributions payable and receivable are recognised as income tax under receivables or payables in the balance sheet.Deferred tax liabilities and tax assets are recognised on the basis of all temporary differences between the carrying amounts and tax bases of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is non-amortisable for tax purposes and other items where temporary differ­ences, except for acquisitions, have arisen at the date of acquisition without affecting the net profit or loss for the year or the tax­able income. In cases where the tax value can be determined according to different taxation rules, deferred tax is measured on the basis of management’s intended use of the asset or settlement of the liability.Deferred tax assets are recognised, following an assessment, at the expected realisable value through offsetting against deferred tax liabilities or elimination in tax on future earnings.Deferred tax is measured on the basis of the tax rules and at the tax rates which, according to the legislation in force at the balance sheet date, will be applicable when the deferred tax is expected to crystallise as current tax. PayablesLong-term payables are measured at cost at the time of contracting such liabilities (raising of the loan). The payables are subsequently measured at amortised cost where capital losses and loan expenses are recognised in the income statement as a financial expense over the term of the payable on the basis of the calculated effective interest rate in force at the timeof contracting the liability.Short-term financial payables are measured at amortised cost, normally corresponding to the nominal value of such payables. Other short-term payables are measured at net realisable value. Prepayments received from customersPrepayments received from customers com­prise amounts received from customers prior to the time and date of delivery of the agreed product or completion of the agreed service. Referring to section 86(4) of the Danish Fi­nancial Statements Act a cash flow state­ment has not been prepared as the enter­prise is included in the consolidated cash flow statement.